Market's view on Falcon Oil
Published on April 2024
- Falcon has plans for a final investment decision by mid-2024 with gas flow commencement targeted for the first half of 2026.
- The project is reportedly running about two years behind the previously announced schedule.
- There are concerns about Falcon’s need for additional fundraising, anticipated around 2025, to secure funding for the project.
- Questions are raised about the CEO’s lack of financial participation in fundraisings, suggesting a lack of commitment.
- The company previously indicated no plans to take their percentage of the licence into production, preferring to sell before production.
- The forthcoming AGM is expected to be stage-managed, with concerns that only selective questions will be addressed.
- The CEO (POQ) is described as risk-averse, preferring not to invest personally in the fundraising efforts.
- Falcon is currently funded to begin drilling the initial two wells of the program, exploring various financing options to meet further capital commitments.